A proposed $130 million processing plant would initially produce about 80,000 tonnes a year of HMC, which is used in a range of applications in plastics and rubber, steelmaking, fertilisers, high-quality glass, water treatment, smartphones and as a flame retardant.

The plant is expected to generate 110 jobs during construction and 25 full-time jobs for permanent residents of Karratha.

Camera IconOne of the bittern streams that carry the wastewater flow from Dampier Salt’s operations into the ocean.

The operation is expected to generate $130 million a year in revenue but EcoMag sees an opportunity to expand processing rates by six to eight times, which could deliver annual revenue of $1 billion with prevailing prices of HMC about $US1250/t ($1821). An operation that size would deliver $25 million in State-based royalties.

The opportunity to expand the operation was identified in a recent study, given the original proposal captured only 10 per cent of the total waste stream.

EcoMag general manager Shaun Triner said the company always knew there was substantial potential to expand production.

“Now we know how much, and it’s better than we thought,” he said.

EcoMag’s proposal would also help diversify the region’s economy and provide a new source of business for Pilbara Ports Authority via importing processing reagents and exporting magnesium carbonate.

Chief executive Tony Crimmins said the business was entirely outside the boom-and-bust cycle and fly-in, fly-out employment practices of the resources industry that dominated the region.

“We would offer both permanent employment and economic diversification,” he said.

The company has been providing samples of its product to potential buyers to meet stringent specifications.

The company is eyeing an initial public offering later this year, as well as a $50 million loan via the Northern Australia Infrastructure Facility.